In the market for a car? You'll have a choice between two distinct options: you can either buy something that's already had an owner, and one that's fresh from the factory floor. The option that suits you will depend on your priorities and budget – but before making the decision, it's a good idea to take stock of the relevant variables.
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Depreciation and Resale Value: A Major Decider
How much is your car going to be worth when you decide to resell it? Subtract this figure from the amount you're paying for it new, and you have the amount you'll effectively be paying in depreciation.
Depreciation is more pronounced during the early months and years of a car's life. Thus, if you want the best value in the long term, it's usually a good idea to buy a used car. If you’re worried about the prospect of going into negative equity because of depreciation, then you can invest in guaranteed asset protection insurance, which will cover not just the value of the car at the point it was written off, but the cost of replacing it as new.
The cost of a used car might also vary depending on where you are in the country – but you should check nearby first. If you’re based near Yorkshire, then look for used cars in Sheffield.
Maintenance and Running Costs Over Time
The ongoing costs of running a car represent a sizeable chunk of the amount you'll spend on it, over the course of its lifespan. Newer cars are protected by manufacturer warranties, and they tend to be cheaper to insure. Older ones, by contrast, are at risk of breaking down – and this is reflected in stricter MOT rules. To prevent this, you might invest in more frequent services.
For cars and other vehicles that are putting in huge mileage, more regular maintenance and servicing will be necessary. You might supplement more extensive annual services with quick, regular check-ups. Bear in mind that more unusual vehicles might incur additional costs. If your car’s wheels are larger, for example, then you’ll typically end up spending more on tyres.
Fuel Efficiency and Technological Advancements
Newer cars tend to run more efficiently than older ones, thanks to incremental advances that have been made in engine design and materials. Newer hybrid models might be able to reclaim energy when you apply the brakes, which will drive up efficiency overall.
The more miles you're putting in, the more that efficiency will tend to matter. If you're driving the length of the country several times a week, then your fuel costs might account for a large portion of your overall spending on the car. Thus, investing in something efficient might be justified in the long term.
It’s also worth bearing in mind that you can improve the efficiency of your vehicle by simply altering your driving behaviour, and by regularly inflating and changing your tyres.
